Gray, 19, has come up through the ranks with Birmingham, and his six goals for the Blues last season have made him one of the most highly-rated English teenagers around.
Gray's pace and dribbling ability have made him a wanted man, and the England Under-20 international continues to impress, with Gary Rowett's side sitting sixth in the Championship table.
Much like many hot prospects before him, Gray is tipped to leave the Championship for the Premier League in the very near future, and Premier League teams appear to be queueing up to sign him.
The Sun report that Tottenham have sent scouts to watch Gray recently, including in midweek as Birmingham beat Bolton Wanderers 1-0.
Gray recently signed a new contract at St. Andrews, but the report states that, having rejected a summer move to Newcastle United, there is a release clause where clubs can pay somewhere between £3.75m and £5m to land the wide man, with Everton and Leicester City also in the race to sign him.
However, Tottenham are reportedly favourites for his signature, with Mauricio Pochettino building a talented young English side, featuring players like Dele Alli and Harry Kane, whilst chairman Daniel Levy is also allegedly keen to pay a relatively small sum for a promising player.
Gray may have had a better chance of first team football at Newcastle, but Tottenham are still looking for options out wide given how Andros Townsend continues to struggle.
Factor in that a move to London is potentially more appealing than the North East, and that Spurs have top six ambitions whilst Newcastle fight relegation, and it's clear to see why Gray may be more willing to join Tottenham than Newcastle, should the White Hart Lane club make a bid in January.